Initial investment = $280,000
Annual cash flow = $128,000
Expected life of project (n) = 4 years
Discount rate (i) = 9%
Present value of cash flows = Annual cash flow x Present value annuity factor (i%, n)
= 128,000 x Present value annuity factor (9%, 4)
= 128,000 x 3.239
= $414,592
Net present value = Present value of cash flows - Initial investment
= 414,592 - 280,000
=$134,592
First option is correct
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial...
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